notice of pontiac city council meeting 17, 2020 at 9:00 a

NOTICE OF PONTIAC CITY COUNCIL MEETING June 17, 2020 at 9:00 a.m.

THE MEETING WILL BE HELD ELECTRONICALLY

The City Council of the City of Pontiac will hold a Special Meeting on the Budget on June 17, 2020 at 9:00 a.m. This meeting will be held electronically pursuant to the Open Meetings Act and Governor Whitmer' s Executive Order 2020-75. The agenda of the Special Meeting on the Budget is attached Pursuant to Executive Order 2020-75, the Pontiac City Council gives notice of the following:

1. Reason for Electronic Meeting. The Pontiac City Council is meeting electronically because Executive Order 2020-75 requires that City Hall be closed

· to the public on the date of the meeting. Therefore, the public cannot be physically present and provide comment in City Hall.

2. Procedures. The public may view the meeting electronically through the following method.

http ://pon tiac.mi. us/ council/pontiactv/index. ph p

3. Public Comment. For individuals who desire to make a public comment, please submit your name and comment in writing to [email protected] no later than 8:30 a.m. on June 17, 2020. Public comments are limited to three (3) minutes. The City Clerk will read your comments during the public comment section of the meeting.

4. Persons with Disabilities. Persons with disabilities may participate in the meeting through the methods set forth in paragraph 2. Individuals with disabilities requiring auxiliary aids or services in order to attend electronically should notify the Interim City Clerk, Garland Doyle at (248) 758-3200 or [email protected] at least 24 hours in advance of the meeting.

Dated 6-16-2020, 5:00 p.m. Garland S. Doyle, Interim City Clerk City of Pontiac 47450 Woodward Ave. Pontiac, MI 48342 Phone: (248) 758-3200

Kermit Williams, District 7 President Randy Carter, District 4 President Pro Tern

PONTIAC CITY COUNCIL

Patrice \-Vaterman, District 1 Megan Shramski, District 2 Mary Pietila, District 3 Gloria Miller, District 5 Dr. Doris Taylor Burks, District 6

It is this Council's mission "To serve the citizens of Pontiac by committing to help provide an enhanced quality of life for its residents, fostering the vision of afamily:fi'iendly community that is a great place to live, work and play. "

Website: http://pontiac.mi.us/council/meeting agendas and minutes/index.php

SPECIAL MEETING on the BUDGET June 17, 2020

9:00 A.M. 171 st Session of the 10 th Council

Call to order

Roll Call

Authorization to Excuse Councilmembers

Amendments to and Approval of the Agenda

Discussions 1. City Council Proposed Changes to the Mayor's Proposed 2020-2021 Annual Budget

The discussion will focus on the following depaiiments: Clerk, Elections and Medical Marihuana; Finance; Human Resources; Information Technology (LT.); Income Tax; Treasury; Economic/Community Development; Mayor; Council and Law (Giarrnarco, Mullin and Horton)

2. City Council Proposed Changes and Questions on the Mayor's Proposed 2020-2021 Annual Budget (The City Council proposed the following amendments to the proposed budget for 2020-21 at the June 15, 2020 City Council Meeting.) Fire a. Add $3840 to Account 101-336-921.000 Utilities b. Add $7675.56 for Medical Marihuana Application Review

Public Safety (Oakland County Sheriff) c. What do the overtime expenses consist of? (Council Member Waterman) cl. Adel $29,286.40 for Medical Marihuana Application Review

Department of Public Works (DPW) e. Account 101-265-818.037 Note: Contractual Janitorial Services (Floor Waxing, Carpet Cleaning) f. Reduce Account 445-265-976.001 to $300,000 (Remove $600,000 for City Window Replacement from

budget) g. Adel $22,088.16 for Medical Marihuana Application Review h. Account 445-458-977.002 Vehicles $712,000?

Garland S. Doyle, M.P.A., Interim City Clerk Office of the City Clerk 47450 Woodward Pontiac, Michigan 48342 Phone (248) 758-3200 Website: http:/ /pontiaccityclerk.com

1. Please provide a list of the right of way areas that MDOT is responsible for maintaining. J. What roads will be resurfaced with the 2,000,000 allocated to Account 203-463-974.074 Road

Constrnction k. Reduce Account 585-564-974.035 Phoenix Center Projects to $7,000,000.00 l. Increase Park budget by $150,000 to cover the cost of park camera, bathroom repairs and part-time park

rangers) m. Add $50,000 to Traffic Control for a Light Study

Building (Wade Trim) n. Add $25,016.64 for Medical Marihuana Application Review

Code Enforcement o. Add $150,000 to bring Animal Control in-house p. Increase Contractual Mowing Services $40,000 q. Add $100,000 to Account 101-733-818.000 Other Professional Services (Blight Removal) r. Add Code Enforcement Officer-Business Monitoring position $72,000 (includes salary and benefits)

Planning s. Add $50,500 for Medical Marihuana Application Review

Cable t. Remove Intern/Cable position from the budget. Reduce $16,875 from Account 231-291-702.000 u. Council requested that the Studio/Council Chambers Renovations be added to the budget

Youth Recreation v. What positions are in Account 208-775-705.002 Part-Time Wages?

Other Council Requests w. Job Description for Contract Compliance Officer (Council President Williams) x. City Position List with Employees names and salaries (Council President Pro Tern Carter)

3. City Council Proposed Changes to the City of Pontiac 2020-2021 General Appropriations Act Ordinance

Resolution City Council

4. Resolution to engage Bonadio & Co, LLP, Certified Public Accountants to conduct an audit of Fiscal Year 2020 budget for the City Council and approve the $10,000.00 retainer to retain the services of Bonadio & Co, LLP.

Public Comment

Adjournment

06/16/2020 BUDGET REPORT FOR CITY OF PONTIAC

City Clerk

2019-20 2019-20 2019-20 2020-21 2020-21 2020-21 2020-2:.

AMENDED ACTIVITY PROJECTED DEPARTMENT REQ. FINANCE REC. MAYOR REC. uEPARTMENT

GL NUMBER DESCRIPTION BUDGET THRU 03/31/20 ACTIVITY BUDGET BUDGET BUDGET UPD,�.TFD REQUEST

101-215-702.000 Salaries & Wages 189,841 132,059 181,483 202,180 202,180 195,535 189,114

101-215-702.004 Overtime Wages 1,000 1,250 200

101-215-705.002 Part Time V'Jages 5,000

101-215-707.003 CELL PHONE STIPEND 600 600 600 600

101-215-715.000 F.I.C.A. - City Contribution 14,523 10,136 13,813 15,467 15,467 14,958 14,958

101-215-716.000 MEDICAL INSURANCE 43,038 16,760 23,240 32,234 32,234 32,234 32,234

101-215-717.000 Life Insurance 2,554 554 979 2,863 2,863 2,863 2,863

101-215-718.500 MERS EMPLOYER CONTRIBUTIONS 11,145 2,632 3,690 4,156 4,156 4,195 4,195

101-215-719.000 Workers Compensation Insurance 553 320 527 429 429 429 429

101-215-719.001 Dental Insurance 1,989 490 1,989 1,709 1,709 1,709 1,709

101-215-727.000 Office Supplies 3,863 3,215 4,239 4,000 4,000 4,000 4,000

101-215-728.000 Postage 1,030 362 440 1,030 1,030 1,030 1,030

101-215-731.003 COMPUTER EQUIPMENT 412 412 700 700 700 700

101-215-816.005 PROFESSIONAL SERVICES - PUBLIC RELATIONS 1,000

101-215-818.000 Other Professional Services 1,000 534 1,000 500 500

101-215-851.000 SERVICES - COMMUNICATIONS-TELEPHONE 654 649 815 680 680 680 680

101-215-852.010 SERVICES - CABLE TV/INTERNET 2,558 498 478 560 560 560 560

101-215-901.000 Printing and Bindery Service 1,000 22 1,000 1,000 1,000 1,000

101-215-902.004 Ordinances 42,000 21,982 31,033 30,000 30,000 30,000 30,000

101-215-902.005 Public Notices 9,000 7,136 9,000 9,000 9,000 9,000 12,960

101-215-914.000 Insurance Property Coverage 25,394 18,583 25,394 24,637 24,637 24,637 24,637

101-215-942.000 Services - Equipment Rentl Non-City 103 27 103

101-215-942.002 COPIER SUPPLES 412 1,462 1,950 2,000 2,000 2,000 2,000

101-215-957.002 Training Expense 4,120 160 4,120 2,500 2,500 2,500 2,500

NET OF REVENUES/APPROPRIATIONS- FUND 101 357,189 218,331 304,90S 336,245 336,245 328,630 33�.169

BEGINNING FUND BALANCE 18,591,032 18,591,032 18,591,032 18,286,127 18,286,127 18,286,127

ENDING FUND BALANCE 18,233,843 18,372,201 18,286,127 17,949,882 17,949,882 17,957,497


Elections

2019-20 2019-20 2019-20 2020-21 2020-21 2020-21 2020-21

AMENDED ACTIVITY PROJECTED DEPARTMENT REQ. FINANCE REC. MAYOR REC. 82pt Updated

Gl NUMBER DESCRIPTION BUDGET THRU 05/31/20 ACTIVITY BUDGET BUDGET BUDGET Request

101-191-702.000 Salaries & Wages 21,837 8,256.50 11,870 65,800 65,800 66,047 65/000

101-191-702.020 SALARIES & WAGES (NON FICA) 31,475 17,446 12,010 65,260 65,260 65,260

101-191-702.100 MAINTENANCE WAGES 1,596 215 1,596 554 554 1,972 1,972

101-191-702.104 MAINTENANCE - OVERTIME 3,198 1,440 3,198 1,080 1,080 1,080 1,080

101-191-705.002 PART-TIME WAGES 5,415 3,926.65 5,415 12,000 12,000 5,953 13,300

101-191-715.000 F. LC.A. - City Contribution 6,881 1,041 6,881 5,089 5,089 5,252 5,252

101-191-716.000 MEDICAL INSURANCE 18,393 169 144 18,658 18,658 18,795 18,795

101-191-717.000 Life Insurance 730 15 20 808 808 831 831

101-191-718.500 MERS EMPLOYER CONTRIBUTIONS 3,897 34 24 4,301 4,301 4,315 4,315

101-191-719.000 Workers Compensation Insurance 3,913 147 242 447 447 527 527

101-191-719.001 Dental Insurance 416 4 416 889 889 901 901

101-191-721.010 Health Care Waiver 7,293 7,293

101-191-727.000 Office Supplies 3,650 984 1,389 2,650 2,650 2,650 2,650

101-191-728.000 Postage 16,840 6,359 9,055 40,000 40,000 40,000 40,000

FOOTNOTE AMOUNTS: 40,000

ELECTION NEWSLETTER AND ACTIVE ENCOURAGEMENT OF ABSENTEE BALLOT USE

101-191-729.001 Printed Forms 4,905 2,470 4,905 9,000 9,000 9,000 12/000

101-191-731.003 COMPUTER EQUIPMENT 13,000 12,275 12,275

101-191-740.000 Operating Supplies 5,150 5,150 9,500 9,500 9,500 9,500

101-191-809.000 Services-Elections 18,630 10,900 18,630 30,000 30,000 15,000 15,000

101-191-809.001 COVID 19 EXPENDITURES 5,000 5,000

101-191-818.000 Other Professional Services 10,000 10,000 10,000 5}000

101-191-851.000 SERVICES - COMMUNICATIONS-TELE! 38 649 815 100 100 100 100

101-191-852.010 SERVICES - CABLE TV/INTERNET 366 344 478 190 190 190 190

101-191-861.000 Travel Expenses 1,030 840 1,030 1,000 1,000 1,000 1,000

101-191-882.000 Prof Services - Public Relations 2,500 2,500 2,500 2,500

101-191-901.000 Printing and Bindery Service 2,000 2,000 2,000 4,260

101-191-902.005 Public Notices 5,150 1,902 5,150 6,000 6,000 6,000 6,000

101-191-932.010 Services - Maintenance-All Other Eq 2,884 2,884

101-191-942.000 Services - Equipment Rentl Non-City 824 305 824 824 824 824 824

101-191-957.002 Training Expense 5,150 587 5,150 10,000 10,000 5,000 2,500

101-191-957.003 Employee Meals - Commission Food 824 527 824

101-191-959.000 Miscellaneous Expenses 824 824 824 824

NET OF REVENUES/APPROPRIATIONS - FUND 101 183,485 70,836 117.668 299,474 299,474 280,521 279,321

BEGINNING FUND BALANCE 18,591,032 18,591,032 18,591,032 18,476,595 18,476,595 18,476,595

ENDING FUND BALANCE 18,407,547 18,520,196 18,473,364 18,177,121 18,177,121 18,196,074

kmartin

Highlight


Medical Marijuana

GLNUMBER

101-255-702.000

101-255-727.000

101-255-728.000

101-255-731.003

101-255-804.000

101-255-804.018

101-255-804.020

101-255-804.026

101-255-816.006

101-255-816.007

101-255-816.008

101-255-816.011

101-255-851.000

101-255-852.010

101-255-902.004

101-255-902.005

101-255-942.002

NET OF REVENUES/APPROPRIATIONS- FUND 101

BEGINNING FUND BALANCE

ENDING FUND BALANCE

Departments

GL NUMBER

249-371-818.000

101-458-818.000

101-206-818.000

101-253-818 .000

Total for Departments - Medical Marihuana

DESCRIPTION

Salaries & Wages

Special Assistant to the Clerk

Office Supplies

Posta ge

COMPUTER EQUIPMENT

Le gal Services - Substitute Co unse l

Legal Services - Gia rmarco Mullins

LEGAL SERVICES- HEARING OFFICER RULES

LEGAL SERVICES - LEGAL ADVISOR TO CC

PROF. SERV. - MED MARIHUANA APPLICATION

PROF. SERV. - FINANCIAL ADVISOR TO CC

PROF. SERV. - HEARING OFFICER

PROF SERV- PLANNING ADV TO CITY CLERK

SERVICES- COMMUNICATIONS-TELEPHONE

SERVICES- CABLE TV/ INTERNET

Pub lic No tices

COPIER SUPPLES

DESCRIPTION

Building

Police

Pla nning

Fire

Finance/ Income Tax

Finance/ Tre asury

DPW/WRC

Medical Marihuana Application Revenue $540,000.00

2019-20 Expenses $62,377

2019-20

AMENDED

BUDGET

2020-21

2,500

100

100

10,500

50,000

16,000

8,395

85,200

30,000

15,000

1,000

100

-218,895

18,591,032

18,372,137

De pt Request BUDGET

$ 25,016.64

$ 29,286.40

$ 50,500.00

$ 7,675.56

$ 776.16

$ 1,006.72

$ 22,088.16

$ 136,349.64

2020-21 Expenses - $302,868 + $136,349.64 $439,217.64 ---:---�---------------

Un a II o cat e d Funds $38,405.36

2019-20

ACTIVITY

THRU 06/16/20

2,100

3,734

320

782

-6,936

18,591,032

18,584,096

2019-20 2020-21 2020-21 2020-21 2020-21

PROJECTED DEPARTMENT FINANCE REC. MAYOR REC. Dept Updated

ACTIVITY BUDGET BUDGET BUDGET Request

11,250 11,250 11,250 15,000

(.25FTE) (.33FTE)

2,100 100 100 100 718

100 400 400 400 400

400 400 400 500

83,842 83,842 9,500 6,750

50,000 17,208 17,208

2,500 2,500

69,000 85,000

8,395

52,270 52,270 61,000 75,000

1,000 24,540 24,540 42,500 44,000

73,675 73,675 60,000 75,000

100 100

100 100

100 100 100 100

782 100 100 100 100

100 100 100 100

-52,377 -266,485 -266,485 -254,650 -302,868

18,591,032 18,489,298 18,489,298 18,489,298

18,528,655 18,222,813 18,222,813 18,234,648

FY 21 Positions

Position FY 21 Department Request FY 21 Mayor's Recommended FY 21 Updated Department Request Council Approved Salary Change

Elections

Assistant City Clerk/Elections Administrator 55,000.00 55,000.00 65,000.00 12-May-20

Elections Assistant 10,800.00 10,800.00 10,800.00

Clerk

City Clerk (Interim) 92,700.00 92,700.00 92,700.00

Deputy City Clerk 66,414.40 66,414.40 66,414.40

Special Assistant to the City Clerk 45,000.00 36,420.80 45,000.00 28-Apr-20

Customer Service Representative 5,000.00

Deputy City Clerk Sheila Grandison

Office of the City Clerk

City Clerk {Interim)

Garland Doyle

Special Assistant to the City Clerk Jonathan Starks

Assistant City Clerk/ Elections Administrator

Jo Lynn Williams

Election Assistants Part-Time

Election Workers

Medical Marihuana

Professional Experts

t Financial Advisor

Sherman J. Taylor, JD CPA

SRT Consulting, LLC

1 Legal

Advisor

Robert S. Huth, Jr.,

Esq. Kirk, Huth, Lange, and

Badalamenti, PLC

I Planning Advisor

Jill Bahm, AICP

Giffels Webster

Hearing Officer

John W. Fraser, Esq.

Grewal

law, PLLC

Customer Service Rep Part-Time

Budget Ordinance

Ordinance No.

An Emergency Ordinance to appropriate the sums of money necessary to meet the expenditures set forth in the

budget recommended for the operation of the City of Pontiac, Michigan; to defray the debts, expenditures, and

liabilities of said City for the fiscal year beginning the first day of July, 2020; to adopt the fee schedule for public

records and services for the fiscal year 2020/21.

Whereas, the proposed General Appropriations Act is required to be effective July 1, 2020 so the City can legally

operate.

The City of Pontiac Ordains:

Section 1. Title.

This ordinance shall be known as the City of Pontiac 2020-2021 General Appropriations Act.

Section 2. Public Hearing on the Budget.

Pursuant to MCLA 141.412 and .413, notice of a public hearing on the proposed budget was published in The Oakland

Press, a newspaper of general circulation on May_, 2020 and a public hearing on the proposed budget was held

on June 2, 2020.

Section 3. Millage Levy, Administration Fee, and Penalties.

The City Council for the City of Pontiac shall authorize the following millages to be levied and collected on the general

property tax of all real and personal property within the City upon the current tax roll an allocated millage of 11.1699

operating; 1.4862 youth center; 1.3961 capital improvement; 2.7923 sanitation; 0.4954 senior services. The City

Treasurer is hereby authorized to impose a one percent (1%) property tax administration fee for all property taxes

due, And a late penalty charge when applicable, in conformance with Section 44 of Public Act 206 of 1893.

Section 4. Adoption of budget by Line item.

The City Council of the City of Pontiac received a five-year budget for 2020-21, 2021-22, 2022-23, 2023-24, and 2024-

25 fiscal years. The City Council of the City of Pontiac adopts the 2020-2021 fiscal year budgets for the various funds

by line item. City officials responsible for the expenditures authorized in the budget may expend City funds up to,

but not to exceed, the total appropriation authorized for each line item.

Section 5. Payment of Bills.

Pursuant to the Local Financial Stability and Choice Act and the Accounting Procedures Manual for Local

Governments in Michigan, all claims (bills) against the City shall be, approved by the Mayor or the Finance Director

of the City of Pontiac prior to being paid.

Budget Ordinance {Continued)

Section 6: Budgeted Revenues and Expenditures--Estimated total revenues and expenditures, including transfers in

and out and other sources, for the various funds of the City of Pontiac beginning July 1, 2020 are $86,396,312 in

revenues and $99,637,873 in expenditures, as set forth in the 2020-2021 budget as reflected in the budget report

dated 4/30/20.

Section 7. Specific Appropriations.

There are no specific appropriations contained in the budget.

Section 8. Periodic Financial Reports.

The Finance Director shall provide the Mayor and City Council financial reports on a monthly basis.

Section 9. Budget Monitoring and Amending.

Whenever it appears to the Finance Director that the actual and probable revenues in any fund will be less than the

estimated revenues upon which appropriations from such fund were based, and when it appears that expenditures

will exceed an appropriation upon which appropriations from such fund were based, the Finance Director shall

present to the Mayor recommendations to prevent expenditures from exceeding available revenues or

appropriations for the fiscal year. Such recommendations shall include proposals for reducing appropriations,

increasing revenues or both. The Finance Director is hereby authorized to amend an appropriation line item within

a fund or department that does not exceed ten thousand dollars ($10,000) within a fiscal year. Any budget

amendments to a line item or department that exceeds ten thousand dollars ($10,000) within a fiscal year must be

approved by the City council prior to amendment. For all transfers in and transfer out between appropriation line

items or departments exceeding ten thousand dollars ($10,000) must be approved by City Council prior to such

transfer.

The foregoing obligations are not required if there is an unforeseen expense due to bona-fide emergency, which

shall be defined as anything imminent impacting the health and safety of the citizens including building fires, but not

including capital improvements.

Section 9a. Budget Format

The Budget shall include the following:

• The City organizational chart, which shall be separated by Department, including all positions, titles, and

salaries.

• All expenditures in and out of funds, capital outlays, applicable budget amendments, original Department

requests, the Mayor's recommended budget, activity through the end of the year, activity to date, prior

year budget, and all sources of income for employee salaries.

Section 10. Severability.

If any section, clause, or provision of this Ordinance shall be declared to be unconstitutional, void, illegal, or

ineffective by any Court of competent jurisdiction, such section, clause, or provision declared to be unconstitutional,

void, or illegal shall thereby cease to be a part of this Ordinance, but the remainder of this Ordinance shall stand and

be in full force and effect.

Section 11. Repealer.

All Ordinances or parts of Ordinances in conflict herewith are hereby repealed only to the extent necessary to give

this Ordinance full force and effect.

Section 12. Publication.

The Clerk shall publish this Ordinance in a newspaper of general circulation.


Section 13. Emergency Declaration and Effective Date.

This Ordinance is declared an emergency to allow the City to legally spend money after July 1, 2020 and shall be

effective immediately upon adoption.

Budget Ordinance (Continued)

With revenue and expenditures categorized by appropriated line item as herein provided:

Fu.nd

Number Ai;mro~riation Line Item Revenues Ex~enditures

101 General $ 37,173,660 $ 39,644,992

202 Major Streets $ 6,219,080 $ 6,647,877

203 Local Streets $ 1,671,941 $ 2,832,770

208 Youth Recreation Millage $ 1,118,061 $ 931,276

209 Cemetery Care Fund $ 693,053 $ 693,053

212 Senior Activities Millage $ 350,227 $ 511,176

226 Sanitaton Fund $ 4,476,187 $ 4,476,187

231 Cable Fund ) ,161 ,-- -s 233,273

239 TIFA District '

1378:i 1():$ 632,001 \ i

l1960 l i4- $ 240 TIFA District 3 \ i~ 2,450,990 ,-. ·- r-~, \ "--7;: .. i ___ '$ 243 Brownfield R'--· ngAL~ \

40,070

249 Building Department $ 2,216,800 $ 2,078,704

252 CDBG FY2012 Fund $ $ 263 Home Buyers Assistance Fund $ $ 265 Drug Enforcement $ 42,885 $ 53,483

276 District Court $ 3,815,155 $ 3,815,155

277 MIDC Fund $ 512,703 $ 909,868

280 Public Act 48 $ 225,000 $ 275,000

445 Capital Improvement $ 955,354 $ 1,925,333

585 Parking $ 194,919 $ 1,776,067

659 Insurance $ 6,661,422 $ 11,294,825

677 Self-Insurance Wk Comp $ 354,649 $ 638,252


General Fund - 101 ESTIMATED REVENUES

Property Taxes

Income Taxes

Licenses and Permits

Federal Grants

State Grants

Charges for Services

Finr · t1 For s I

Inti::. +. and 21 ··~

Otter} · f .· _j ·• •.. ,. \ .

Trai1s,2,s Iii and Gu1e, Usb

TOTAL ESTIMATED REVENUES

APPROPRIATIONS General Government

Public Safety

Public Works

Community and Economic Development

Recreation and Culture

Other Functions

Transfers Out and Other Uses

TOTAL APPROPRIATIONS

General Fund NET OF REVENUES/APPROPRIATIONS Estimated Beginning Fund Balance Estimated Ending Fund Balance

Major Street Fund - 202 ESTIMATED REVENUES

State Grants

Interest and Rents

Tv·- -+~rs 117---qd Ot'-~( Us~F

r ·' 1 'To \sr1

\ / . \/ I / ~-

APPROPRIAl I

Public Works


Major Street Fund NET OF REVENUES/APPROPRIATIONS Estimated Beginning Fund Balance

Estimated Ending Fund Balance

j - I

I

8,470,851

14,188,360

275,000

20,000

10,479,589

997,020

8,000

416,772

2,022,068

296,000

37,173,660

6,223,829

20,753,383

2,558,206

2,055,964

3,689,940

1,835,294

2,528,376

39,644,992

(2,471,332) 16,831,781 14,360,449

5,592,400

26,680

600,000

6,219,080

6,647,877

6,647,877

(428,797) 1,194,588

765,791


Local Street Fund - 203

ESTIMATED REVENUES

State Grants

Interest and Rents


APPROPRIA·1. 'c;

P•1hli .V I ' ,\ I ' ;

Transfers Out and dtherUses


Local Street Fund

NET OF REVENUES/APPROPRIATIONS

Estimated Beginning Fund Balance


Youth Recreation Millage Fund - 208

ESTIMATED REVENUES

Property Taxes

Other Revenue

TOT/ -STll\/1. ·-o - -- ·-1\j

APPROPRIATil 'S -- i

, •--'-• ect .. -:>n an ... .::t...,urt.

- '


Recreation Millage Fund




Cemetery Care Fund - 209 ESTIMATED REVENUES

-

;r--=:_-fers !'-·nd O''--·r Use~

'. .. / ?T 1 ~11 ;1.~//1 ) r--11 c---

1 i,17_ ·,.'. ! _____ II

APPROPRIA1:;=-c-1~{ - 1. ,.

General Government


Cemetery Care Fund




j;

-.

1,644,000

27,941

1,671,941

2,232,770

600,000

2,832,770

(1,160,829)

4,620,715

3,459,886

968,061

150,000

1,118,061

931,276

931,276

186,785

186,512

373,297

693,053

693,053

693,053

693,053

18,327

18,327


Building Department Fund - 249

ESTIMATED REVENUES

APPROPRI

Licenses and Permits


Interest and Rents

l

Public Safety

LE~ A u. V UES


Building Department Fund




CDBG FY2012 Fund - 252

ESTIMATED REVENUES

APPROPRIATlf"'. ,,..

C 'rnunit

CDBG FY2012 Fund


·elc \ nt

T, - _, Pf , ,,1ATI ~s




Home Buyers Assistance Fund - 263

ESTIMATED REVENUES

APPROPRIATld/ :,~ i

Cor11 rii L., y I···- : /


,or

\ I

Home Buyers Assistance Fund




2,137,800

76,500

2,500

2,216,800

2,078,704

2,078,704

138,096

753,025

891,121

30,335

30,335

3,638

3,638


Drug Enforcement Fund - 265

ESTIMATED REVENUES

Fines and Forfeits

Interest and Rents


APPROPRI, '()NS

Pu, : : : I

. .• I I . I ·,-;:;:CAL ;1P,~.OPRIA, ,s.:.-, .:.; .

Drug Enforcement Fund




District Court - 276

ESTIMATED REVENUES


State Grants

Fine5 ,u . orfr

lntere_ 'd F it

Tran: C,vr' • uCi, i '.r se

~


APPROPRIATIONS

General Government

Transfers Out and Other Uses


District Court




42,000

885

42,885

53,483

53,483

(10,598)

222,717

212,119

773,700

182,896

1,022,000

1,800

1,834,759

3,815,155

3,776,167

38,988

3,815,155

2,093

2,093


MIDC Fund - 277

ESTIMATED REVENUES

State Grants

Transfers In and Other Uses

ALF /11

APPROPF'"T' j' __ , - -- ~

General Government

~\ ~UE:


MIDC Fund




PA 48 - Telecommunications Fund - 280

ESTIMATED REVENUES

State Grants


APPROPRIATI0 1

Tra,. ~,:; 01 a1 Ot 11 15,

T, Pl 01 IAT!m

PA 48 - Telecommunications Fund




494,715

17,988

512,703

909,868

909,868

(397,165)

551,693

154,528

225,000

225,000

275,000

275,000

(50,000}

58,105

8,105


Capital Improvement Fund - 445

ESTIMATED REVENUES

Property Taxes

Interest and Rents


APPROPRIA •f\JS ', ', /

Gen .cl' F-L1Ji1c ::,dfety'

Public Works

Capital Improvement Fund





Parking Fund - 585

ESTIMATED REVENUES

Property Taxes

State Grants

lntP - 1nd ' ts

Tra. ""rs In 1L ")th , e'.'

Tt E~ A D vtNU

APPROPRIATIONS

Public Works

Recreation and Culture


Parking Fund


Estimated Beginning Net Position

Estimated Ending Net Position

928,632

26,722

955,354

1,610,333

125,000

190,000

1,925,333

(969,979)

2,305,466

1,335,487

(1,000)

163,020

32,335

564

194,919

64,760

1,711,307

1,776,067

(1,581,148)

12,877,720

11,296,572


Insurance Fund - 659

ESTIMATED REVENUES


Other Revenue

TOTAL ESTJMATEDJ~EVENUES .-

APPROPRIAl I..C "; --

nctil


Insurance Fund




Workers' Compensation Fund - 677

ESTIMATED REVENUES


Int _ and 1ts

OT Tl I :[ F1 ' Jl

APPROPRIATION::,

Other Functions


Workers' Compensation Fund




5,964,970

696,452

6,661,422

11,294,825

11,294,825

(4,633,403)

5,579,925

946,522

338,252

16,397

354,649

638,252

638,252

(283,603)

904,960

621,357

Pontiac City Council Resolution

WHEREAS, during budget discmsions for FY 2020--2021, the Pontiac City Council has determined that as prudent and fiscally responsible fiduciaries, it is necessa1y to retain an outside professional certified public accounting firm, to assist the Council in analyzing financial matters of the City; and,

WHEREAS, retaining an outside professional certified public accounting firm would be in the best interest of the citizens of Pontiac and would be consistent with the Pontiac City Council's duty to maintain integrity and transparency; and,

WHEREAS, Bonadio & Co., LLP, Certified Public Accountants, submitted an engagement letter to the Pontiac City Council on June 14, 2020 (letter a11d profeuio11ct! bioJmphies are attachec•; and,

\"1HEREAS, section 3.1 J 5 of the Pontiac City Charter provides, "Council may, within appropriations provided in the budget, appoint staff or contract for services. Staff or persons engaged pursuant to contract serve at the pleasure of the Council.

NOW, THEREFORE BE IT RESOLVED that the Ponliac City Council heteby acknowledges and agrees to the standard terms of the Professional Consulting Services contained in the engagement letter provided by Bonadio & Co, LLP, Certified Public Accountants, and further agrees to proceed with phase 1 of the proposed phase apprnach and also agrees to submit the requested retainer of Ten Thousand ($10,000.00) Dollars upon passage of this resolution.

Bonadio & Co., LLP : ,<'i'iii'i!·:I :•,d,lic ,\:'u,11; d:lill':

171 Sully's Trail Pittsford, New York 14534

p (585) 381-1000 f (585) 381-3131

www.bonacfio.com

June 14, 2020

Pontiac City Council City of Pontiac 47450 Woodward Avenue Pontiac, Michigan 48342

RE: Professional Consulting Services

We appreciate the opportunity to provide professional consulting services to the Council Members (the "Council") of the City of Pontiac, Michigan (the "City"). This engagement letter confirms our understanding of your retention of Bonadio & Co., LLP ("Bonadio") to assist you in analyzing select financial matters of the City.

Scope of Services Our procedures may include, but are not limited to the following:

" Request and obtain the City's 2020 and 2021 budget and associated reports, forms and supporting documentation.

" Perform a high-level analysis of the 2020 and 2021 budgets to select budget lines/sections for further evaluation.

" Evaluate payroll costs compared to budgeted amounts ensuring that employees are hired and compensated according to approved budgetary amounts

" Draft and submit a document requesting specific budget detail, contracts, invoices, payroll records, and other supporting documentation relevant to selected budget lines/sections.

0 Receive and analyze documents received from request above. This analysis may include forensic accounting and investigative procedures for certain transactions, revenues and expenditures, if we identify that those transactions may be inappropriate or not compliant with procurement policy, City Council Charter and/or federal, state and local laws and regulations. Such procedures are deemed to be forensic in nature, and may include the following:

o Compare invoices and payments for services, service time periods, and payment terms with procurement policies and contractual agreements

o Evaluate contracts of service providers to ensure they are compliant with services agreed upon at procurement. Perform on-site service provider visitation or request documents to review internal service records and ensure that internal records are agreement with services being billed.

o Review invoices that are not covered by an appropriate contractual agreement and/or were purchased outside of the procurement policy.

0 Draft reports of our findings, observations and recommendations following evaluations of select budget lines/sections.

Summary of Roles and Responsibilities

The services under this engagement letter will be performed in accordance with the Statement on Standards for Consulting Services ("SSCS") issued by the American Institute of Certified Public Accountants ("AICPA"). Consulting services differ fundamentally from attestation services. In an attest service, the practitioner expresses a conclusion about the reliability of a written assertion that is the responsibility of another party, the asserter. In a consulting service, the practitioner

. develops the findings, conclusions, and recommendations presented, bl;lsed solely by the agreement between the practitioner and the client.

ALBANY • BATAVIA• BUFFALO • DALLAS • EAST AURORA • NY METRO AREA • ROCHESTER • RUTLAND • SYRACUSE • UTICA

Accordingly, our services will not constitute an audit, compilation, review, or attestation service of the City's financial statements or any part thereof, as described in the pronouncements on professional standards of the AICPA or the Public Company Accounting Oversight Board ("PCAOB"). Additionally, we will not otherwise verify the data you submit for accuracy or completeness. Rather, we will rely on the accuracy and completeness of the documents and information you provide to us.

We will provide expertise and recommendations based on our observations during the work requested by you to assist in this project. It will be the Council's responsibility to provide substantive involvement as part of the project team, determine the level of work desired, and determine how to proceed relevant to any recommendations or advice provided. You are responsible for making all management decisions and for performing management functions and overseeing and monitoring the services we provide by designating an individual, who possesses suitable skill, knowledge or experience and will assure that you have obtained all needed information from appropriate sources to make appropriate business decisions. Further, although we will have discussions of various business matters, it is understood that we may not have been provided all appropriate information to make informed recommendations related to those discussions.. You are responsible for evaluating the adequacy and results of the services performed and accepting responsibility for the results of such services. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management and/or Council responsibilities.

Warranties and Liabilities Our services will be performed in a professional and workmanlike manner. All services will be rendered by and/or under the supervision of Bonadio personnel or Bonadio's specialized third-party consultants or subcontractors. Bonadio makes no representation or warranty regarding either the services to be provided or any deliverables. In no event, unless it has been finally determined that Bonadio was grossly negligent or acted willfully or fraudulently, shall Bonadio be liable to you or any third party, whether a claim be in tort, contract or otherwise for any amount in excess of the total professional fees (excluding expenses) paid by you to us under this agreement for the particular service to which such claim relates. In no event shall Bonadio be liable for any special, consequential, indirect, exemplary, punitive, lost profits or similar damages, even if we have been apprised of the possibility thereof.

You agree to indemnify and hold harmless Bonadio, its employees, partners and third party consultants and subcontractors from any and all third party claims, liabilities, costs, and expenses, including reasonable attorneys' fees, arising from or relating to the services or deliverables under this letter, except to the extent finally determined to have resulted from the gross negligence, willful misconduct or fraudulent behavior of Bonadio & Co., LLP relating to such services or deliverables. Your indemnity obligation contained in this paragraph shall survive termination or expiration of this letter (including but not limited to all reasonable costs and expenses related to answering subpoenas, attending depositions, being named in third-party claims, related attorneys' fees, etc.).

In the event of a conflict or inconsistency between the terms of this letter and any other written agreement between us relative to the services to be performed (including any deliverables), the terms of this letter shall be deemed controlling in all material respects.

Deliverables

All information and materials of any form or description collected by us in the course of our engagement shall constitute our work files and will at all times, during and after completion of our engagement, remain in our exclusive possession. We shall have unlimited discretion to retain, discard, or dispose of our work files but will at all times maintain all information and materials provided by the City in strictest confidence.

We will use our best efforts to keep strictly confidential the report, its existence, and content, as well as the identity of the City and other identifying information. We will nevertheless have no liability to the City or any third party for information disclosed in, or pursuant to, any ruling, order, or proceeding of any court or other judicial or non-judicial forum or of any regulatory agency or similar instrumentality.

Fees Our fees for this engagement will be on the actual time spent at our standard hourly rates, plus out of pocket expenses. Our hourly rates are as follows:

Partner/EVP

Senior

The scope of a project of this nature can be difficult to estimate. Variables such as availability of documentation, quality of documentation, complexity of budgeting calculations/reports/formulas, cooperativeness of knowledgeable parties and expansiveness of future Council requests based on findings can have a considerable effect on the number of hours that is needed to adequately cqmplete the Council's objectives.

Therefore, we propose a phased approach, whereby we set a not-to-exceed amount on phase I before commencement. After phase I is completed, we will have a gained the knowledge needed to determine what the scope and associated fees may be for additional phases, and the Council may elect to continue on to an additional phase - or - conclude services at that time.

For phase I, we will set a not-to-exceed amount of $25,000 and require a retainer of $10,000 to commence procedures. When/if we begin to approach our not-to-exceed amount of $25,000, we will consult with the Council to determine the scope of a phase II based on the work performed and continued objectives of the Council.

Should we experience unnecessary delays, or uncooperativeness that hinders our efficient use of time, we will immediately stop our procedures, notify you of the situation and request assistance for the appropriate resolution. In such an event, you will not hold us responsible and all fees and expenses incurred will be paid to us in accordance with the terms of this engagement.

Should we identify any fraudulent activity we will immediately stop our procedures, notify you of the situation and request assistance for the appropriate resolution. In such an event, we will work collaboratively to identify the appropriate course of action regarding the continuation, expansion, or suspension of our procedures. Often times, additional procedures related to the discovery of fraudulent activity will be covered under a separate engagement letter.

We will submit invoices to you monthly, payable within 30 days. We reserve the right to defer rendering further services until payment is received on past due invoices. lt is agreed that our fee is not contingent on the outcome or findings of the work we perform.

If information becomes known that would make our continued involvement in this engagement inappropriate, or if the attorneys or other parties involved in this matter change, we reserve the right to withdraw from this engagement.

You may request that we perform additional services not contemplated by this engagement letter. If this occurs, we will communicate with you regarding the scope of the additional services and the estimated fee. We also may issue a separate engagement letter covering the additional services. In the absence of any other written communication from us documenting such additional services, our services will continue to be governed by the terms of this engagement letter.

Our work, to be performed under your direction, is to perform such tasks as may be identified during the course of this engagement. However, we may refuse to perform any requested act that we deem a violation of law, public policy, or our professional ethical standards, and may, as a result, withdraw from the engagement wi_thout penalty.

If this is in accordance with your understanding and meets with your approval, please sign and date one copy of this letter in the space provided. This agreement will become effective when you return the signed copy to us.

Randall Shepard, CPA Partner

ACKNOWLEDGMENT

Very truly yours, THE BONADIO GROUP

Timothy Ball, CFE Executive Vice President

This letter correctly sets forth the understanding of the Council and its agreement with the above stated terms and conditions

Officer Name: _____________ _

Officer Signature: ____________ _

Title: ________________ _

Date: ________________ _

Randy Shepard, CPJ\ ....... f'artner (r,;l10prn-d(a)bon,.Klio.corn)

Randy is a partner in Bonadio's Government Division and is the team leader for the Buffalo and Rochester Offices. He has been with Bonadio for over 20 years with experience in many areas of attestation engagements. Randy provides consulting, accounting, and auditing services for a variety of clients such as municipalities, public authorities, and local development corporations. As a result of this work, Randy has developed extensive experience with respect to compliance and reporting requirements for these organizations, knowledge of Governmental Accounting Standards Board (GASB) pronouncements, the NYS Public Authorities Reform Act, as well as the evaluation and

design of internal accounting systems. Randy has also been a speaker on various governmental topics for the NYS Association of Counties as well as Governmental Finance Officers Association, including many recent GASB standards.

Randy received his B.S. degree in Accounting from the State University of New York at Geneseo. He is a member of the American Institute of Certified Public Accountants and Government Finance Officers Association (National and Local level).

Kenneth J. Pink, CPA, Partner ([email protected])

Ken Pink is a partner in The Bonadio Group CPA firm. He is a member of the firm's Board of Directors, serves as co-leader of the firm's New York City Office, and is a trustee for the Bonadio 401 (k) plan, which has reached more than $100 million in assets.

Ken manages a leadership team of 15 partners and principals, with a total staff of 60 across New York State. His practice has annual revenues exceeding $9 million.

With more than 30 years in accounting and consulting, Ken is a trusted advisor who is continually seeking to create stability, wealth and opportunity for his clients. In addition

to his acumen in financial audits, Ken brings his clients a deep understanding and an unsurpassed level of experience and expertise in conducting vendor and operational audits, conducting required audits, delivering business consulting and planning, and assisting with other accounting needs.

Ken received his Bachelor of Science degree in accounting from the State University of New York at Geneseo, and has more than 30 years of public accounting experience with both international and locally based accounting firms. In 2003, Ken merged his own firm, Perry, Pink and Semmler, with The Bonadio Group.

These represent some of Ken's activities in his profession and in service to the community:

• Member of the Association of Certified Fraud Examiners Association " Member of the New York State Government Finance Officers Association • Member of the American Institute of Certified Public Accountants • Associate Partner of the New York State Association of Counties • Member of the New York State Society of Certified Public Accountants • President of the New York State Society of Certified Public Accountants Political Action

Committee • Member of the Genesee Valley Club • Chairman for the Keep the Sun Shining $6.4 million fund raising campaign for disabled children • Member and past president of the Rochester Rotary Club • Council member for the SUNY College at Brockport • Member of the Board of Directors for Matt Talbott Ministries • Trustee of the Bonadio Group 401 (k) plan, with more than 600 participants

(lhnll(11?bo11rnlio.com)

Tim is an Executive Vice President in Bonadio's Government Consulting Division as well as the Fraud and Forensic Accounting and Litigation Support Division. Tim currently provides a wide array of consulting, forensic and auditing services for the Firm. Tim specializes in providing forensic examination and consulting support for both criminal and civil litigation. He is an expert in designing on-site examination programs to both identify and uncover fraud. In addition, Tim has been a consultant to local governments and notfor-profits for assistance in strengthening their internal control structure and detecting and deterring fraud.

Tim received his B.S. degree in accounting from Alfred University. Tim is also a Certified Fraud Examiner (CFE) and a member of the National Association of Certified Fraud Examiners and the Western New York Certified Fraud Examiners Association.

([email protected])

Joe is a Manager Bonadio's Fraud and Forensic Accounting and Litigation Support Division. Joe provides consulting services for numerous municipal, non-profit and private clients. He specializes in fraud investigations, forensic accounting, internal control reviews, efficiency studies and evaluations of policies and procedures.

Joe is a graduate of St. John Fisher College. Joe is a Certified Public Accountant (CPA) and a Certified Fraud Examiner (CFE) and a member of the American Institute of Certified Public Accountants and the National Association of Certified Fraud Examiners.

notice of pontiac city council meeting 17, 2020 at 9:00 a

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